Former Vreba-Hoff dairies near Hudson sold; buyers expect 100 jobs

Sale of the former Vreba-Hoff dairies near Hudson was finalized Friday by a bank that foreclosed on the property more than two years ago and shut down the operations.

"We have indeed sold the dairies," said Sarah Kolell, public relations director for Rabo AgriFinance. Sale documents were signed Friday, she said, making Milk Source LLC of Kaukauna, Wis., the new owner of the dairy facilities.

The purchase includes three dairy farms and approximately 2,250 acres of farmland, according to a news release issued by Milk Source. The total investment will be up to $90 million, according to co-owner Jim Ostrom. He also said the company expects to employ 100 full-time workers with full benefits.

Milk Source is to begin remodeling shortly to modernize the dairies, he said.

"We will insure the sustainability of these farms through environmental integrity, financial responsibility and modern technology, such as sand recycling for the animal bedding and a solid manure separation system," Ostrom said.

The dairies housed as many as 7,000 cows when Vreba-Hoff built and operated them a dozen years ago. The dairies ran into repeated legal battles with the Michigan Department of Environmental Quality and criticism from environmental groups over manure management.

Hudson-based Environmentally Concerned Citizens of South Central Michigan was critical of a potential purchase by Milk Source in its most recent newsletter that contained a headline saying, "What lies ahead? MUCH, MUCH more of the same crap..."

Ostrom said in the news release that Milk Source has been working on the purchase for more than a year.

He said the company founded with two other dairy farmers "has a nearly 20-year track record of environmental stewardship, as well as sustainable and financially sound dairy farming in Wisconsin."

His partners are John Vosters and Todd Willer.

"During our due diligence of this purchase we were impressed by the agricultural community in Michigan. The local growers and suppliers are among the very best in the country," he stated.

"In addition, we found ourselves in contact with numerous state of Michigan and local officials and were very impressed with their knowledge, professionalism and decision-making," Ostrom stated. "Along each step of the way, we found that the government was rational, sensible and fair. This went a long way in convincing us to look at Michigan as a place to make a substantial investment."